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How will the recession impact Ballard?

Posted by Geeky Swedes on October 16th, 2008

With the economic crisis in full swing and the real possibility of a deep recession on the horizon, many Ballard residents are wondering how long before the neighborhood begins to feel the effects. You can’t help but wonder what the downturn will mean for small businesses and the explosion of new development, including the many new restaurants in the area. KOMO TV asked a couple Ballard businesses how they’re doing, and specialty shop Romanza said sales are down. “We’re really hoping people stick to that idea of shopping local, get away from those box stores,” said Vince Harris, the owner of the store. “Please shop locally. Support your local people. It’s the best thing you can do for all of us.” That’s very good advice.

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  • Howdy!

    Don't go to our location on 15th as suggested in an earlier post! That location was where we took care of our web customers and we have consolidated those operations into our walk-in store on Market Street. The owner of that building has yet to remove our old sign. I apologize for any confusion!

    To the poster who addressed small businesses not providing health care. We at Romanza want to provide health care but this was/is our problem. Currently we have 10 employees (including Vince and I) in our Walla Walla and Ballard shops. Of those 10 employees 9 have health care through their spouses, parents, or significant others. Given this, we have only 1 without health care. Unfortunately with 1 employee needing care, I cannot purchase a group policy. Oddly it's more expensive to insure one person that it is to insure a group of people. Crazy yes? We just can't afford it and we can't afford to raise our prices to cover it. All of the vendors are raising their prices already and this would make all of our merchandise very expensive.

    A note on our prices... Our prices are totally based on the wholesale price of the merchandise we sell. It is true if you buy in giant quantities you get a price break and can price less. Unfortunately we can't buy in those quantities so if you compare us with Pottery Barn, Pottery Barn will have a better price. If you compare us with Zanadia or any other small boutique shop, you will find most of our lines priced exactly the same.

    To Ballard Girl who said we've changed... Nope, same lines that we love since we opened 9 years ago! We've always liked and carried whimsical items! What's would the holidays be like without whimsical?! Tacky? Not intentionally! We totally buy for our Ballard audience! Tell us what you want and we'll get it! Our goal is to make you happy and provide a wonderful experience!

    About candles. Unless they are made in China or Mexico, candles are always pricey and a luxury item! All of the Romanza candle lines are made in the USA (some here in Seattle), by hand, by people like you and me. The price reflects this and again, we don't pick the price, it's based on the wholesale price we pay.

    Thanks for listening! Thanks for supporting us and shopping local!

    John
    Owner Romanza Gifts and Home Decor
  • Emeraldkity
    It will help the planet- which we happen to live on, unless you know something I don't.

    I don't ascribe to the Bush protocol of spending wily-nily.

    http://www.storyofstuff.com/
  • Looney
    I agree Emerald Kitty, much better we all buy less, it'll really help out local stores and the economy.
  • Emeraldkity
    We have great grocery stores in Fremont/Ballard. I also am much more likely to go out to a restaurant in Ballard than elsewhere. I do go to used bookstores in Ballard, to Mr. Spots & to Sonic Boom.

    However, I also am involved with Sustainable Ballard & in buying less. I prefer to buy " pre-owned" , to rent if I don't need to own it & to repair things instead of buying new.
    Tchotchkes, I do not need or want.
  • Swishy Ballard Boy
    Can we stop tipping baristas who don't give table service?
  • Judy
    I'm with toudios - I'd like to see the sources for the stats. Don't the big stores pay wages, collect and submit sales taxes, support local community services, pay assessments for local improvements, etc. And even Joe the Plumber can probably qualify for an SBA loan. Local governments also provide incentives for businesses - businesses that will realize a return on that investment - not just because they are "nice" governments.

    Small businesses need to be business-like in their operations. What is their market, what is their competition - do a real SWAT analysis.

    Do big stores really send their money out of the community? Where does Costco send theirs?
  • ballard girl
    I agree, when Romanza first opened, it had such great things, then it moved to the whimisical, boas, over the top costume jewelry, tacky silly gifts, very expensive candles and lots of pet things....nothing in there that I would buy anymore...Great stoire wish they would buy more for the Ballard audience...
  • milo dakkat
    I'm not into the boutique-y stuff but whenever possible, I opt for the services within the 'hood as mentioned above: eye glasses, hair cuts, bread, acupuncture, books, etc. This includes restaurants and especially the venues that support live music and art. If I still had my yacht, I'd get it serviced here too!
  • boardbrown
    Aren't Obama and McCain pledging to fix all this? So we need not worry, right?

    Relief is in sight for Joe the BikeShopGuy.
  • NAG
    For me it comes down to want vs. need. Unfortunately, most of the shops in our beloved Ballard sell "wants," except for my two favorites, Ballard Market and Fred Meyer. And I guess the drug stores. I can't think of anything else for sale in Ballard that I "need."
  • Bethany
    I have lots of favorite shops in the neighborhood, like Bark, Ballard Camera, Ballard Home Comforts and Venue.

    But I'm not surprised that sales at Romanza are down. It's the kind of store that has great things to look at, and few things you really want to buy.
  • Sheila
    I don't only try to buy retail in my neighbohood, I also go to the local chiropractor, massage therapist, eye doctor, naturopath, etc. If it isn't in my neighborhood I try to go to the neighborhoods next to mine. I like the sense of community and try to do my part to keep it going. That's not to say that I won't go to Costco or Sam's Club sometimes. It just isn't a regular habit of mine.
  • toudios
    i'd like to see some sources cited for these figures that are being thrown about.
  • BC
    I support shopping locally, but can't help but echo the concerns others have made. When you are strapped for cash, on a budget, you want to shop and buy for the best price. There are shops in Ballard that have prices much higher than bigger store, merely for the reason that they do not (cannot) buy in the voume they do which allows them a better price point. I think having unique products and more of a personal touch make a huge difference. I want to buy it, because I can't get it anywhere else. Tableau carries high end things, but they are so unique, I go there first for a accessory that will create a statment,and not be seen everywhere. Customer service goes a long way...sometimes when I come into shops they are readin g a magazine, talking in the cell phone or in deep conversation with a patron who is obviously a friend..the reasonI leave for the most part is because I am being ignored. Merchants are going to have to come up with a strategy that will work for them as a group....some places in small towns open up at 9:00am to accomodate those early risers who need to get things done, or they sponsor the holidays by having a overall open house and give a 15-20% discount for the evening...they need to come up with a plan and because we love Ballard we will support it.
  • gooner
    cyclo, you make a good point, but to play devils advocate, i would suggest that IF there weren't the big box stores, and people spent their money locally, their revenues would be higher and they could afford to give those same type of benifits.

    i am sure it is a case by case basis, but i am sure many of the small companies out there don't offer that type of benefit b/c they can't afford it.

    either way, i will shop locally all i can
  • jk
    While Cyclocross has an important point about the lack of benefits offered by small businesses, there are other things to consider as well.

    Your dollars spent in locally-owned businesses have three times the impact on your community as dollars spent at national chains. When shopping locally, you simultaneously create jobs, fund more city services through sales tax, invest in neighborhood improvement and promote community development.
    When you spend your dollars at an independent, local business, you keep more money in your hometown—supporting your community’s social services, schools, your public library and local non-profits. How so? Locally-owned businesses return about 80% of each dollar to their community. Every dollar spent at a local business will return up to five times that amount within your community through city taxes, employees’ wages, and purchases of materials, supplies and services at other independent businesses.
    Chains and franchises, on the other hand, contribute roughly 40%, and as little as 20% of sales back to your community. And many big boxes, such as Walmart or Home Depot, are given tax-incentives by local governments—costing you far more than the discounted price you think you’re paying.
  • m
    One of the things I consider as I shop locally is that a lot of the retail owners on Ballard Ave are Ballard residents who also shop locally. It goes round and round.

    I've worked retail for a living too, and I agree that small shops can't provide the benefits that large corps can - the other side of that is that when I had a personal situation come up that negatively impacted me for several weeks I experienced a tremendous amount of personal support that would be unheard of in corp. America.

    Its a tough gig all the way around....
  • cyclocross
    I shop local as much as possible just because it's more convenient. That said, I don't buy into the notion that smaller/local is always socially more responsible than larger/chains. I spent many years working in bike shops. Almost all were mom and pop operations. Of the half dozen shops I worked at in 3 different states only 1 was ever able to offer me healthcare. None offered any sort of retirement. On the other hand REI - which is a major national chain - was able to offer me a matching 401k, pension, profit sharing and free health care. Way better treatment than I received from any non-chain shop. I suspect that people who have never had to work retail for a living (not just as a part time college) job are completely clueless to this situation.

    This brings up the question of which is more socially responsible: the mom and pop shop that leaves their employees hanging should they get sick or the national chain that provides them with healthcare? Much as I can't stand the ubiquity and crappy coffee of Starbuck's I at least give them credit for taking better care of their employees than the vast majority of indie coffee shops out there. I think a lot of people jump onto the "buy local" bandwagon without giving a second thought to how those companies treat the people that work for them.
  • 6500
    I like the stuff at Romanza and love to support local Ballard businesses, but their prices at the Market St. location are priced much higher than other boutiques in town for very similar merchandise. Check out their other location on 15th for candles though-- awesome selection of good brands and great scented candles!
  • Joey
    I hate to say it but when the economy is tanking and budgets are tighter, discount big box stores become more appealing.

    Of course this just has a ripple effect on the local economy and intensifies the recession, but thats the way it works.
  • candice.
    I work for a small company in Ballard and let me tell you... the recession has hit! We work on boats of all sizes and apparently when folks are strapped for cash their yacht maintenance is one of the first luxuries to go.

    What would Ballard be if all the marine industry sunk?
  • Ben
    Another possible effect of the recession that you didn't mention is increased crime.
  • milo dakkat
    Think what you want of the new development, but I am glad that it happened before things went bad. Otherwise downtown Ballard would look like the strip containing the bowling alley, denny's, fast food and 7-11, filled with vacant lots, chain link fences and concrete slabs. As it is, that is a reminder of the other direction Ballard could just have easily gone.

    You betcha I'll shop locally!
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